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Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $101,700 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,900 25,300 75,200 10,320 $ 85,520 c. Time tickets show the following labor used for the month. Job 201 Job 202 Total direct labor Indirect labor Total labor used $ 40,900 14,300 55,200 25,900 $ 81,100 d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201. g. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment Rent on factory building (payable) Factory utilities (payable) Expired factory insurance Total other factory overhead costs $ 33,700 670 970 4,700 $ 40,040 Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record materials purchases. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record direct materials used. Note: Enter debits before credits. General Journal Debit Credit Transaction b(1). Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet 1 N 2 3 3 4 on 5 6 7 8 9 10 > Record indirect materials used. Note: Enter debits before credits. General Journal Debit Credit Transaction b(2) Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record direct labor used. Note: Enter debits before credits. Transaction General Journal Debit Credit c(1) Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record indirect labor used. Note: Enter debits before credits. General Journal Debit Credit Transaction (2) Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record overhead applied to jobs at the rate of 80% of direct materials cost. Note: Enter debits before credits. General Journal Debit Credit Transaction d. Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record the completion of Job 201. Note: Enter debits before credits. General Journal Debit Credit Transaction e. Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the sale of job 201 on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record the cost of goods sold for Job 201. Note: Enter debits before credits. General Journal Debit Credit Transaction f(2) Record entry Clear entry View general journal Exercise 15-7 (Algo) Recording materials, labor, overhead, and sales LO P1, P2, P3 Prepare journal entries to record the transactions reflected in items a through g. View transaction list Journal entry worksheet Record other actual factory overhead costs. Note: Enter debits before credits. General Journal Debit Credit Transaction 9. Record entry Clear entry View general journal View transaction list X: X: 1 Record materials purchases. 2 Record direct materials used. 3 Record indirect materials used. 4 Record direct labor used. 5 Record indirect labor used. 6 Record overhead applied to jobs at the rate of 80% of direct materials cost. 7 Record the completion of Job 201. Note : = journal entry has been entered 8 Record the sale of job 201 on credit. 9 Record the cost of goods sold for Job 201. 10 Record other actual factory overhead costs. Note : = journal entry has been entered

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